Rsltsfor FY2000-Unaudited-Pt2
Konami Corporation
10 May 2001
PART 2
Summary of Significant Accounting Policies
1. Scope of Consolidation
(1) The consolidated financial statements include the accounts of KONAMI
CORPORATION (the 'Company') and its 31 consolidated subsidiaries. See '1.
Organization Structure of Konami Group',which shows major subsidiaries.
The number of consolidated subsidiaries increased with the establishment of
the new companies Konami Marketing, Inc. and Konami Software Shanghai,
Inc., and PEOPLE CO., LTD., which was acquired through a tender offer
accompanied by its consolidated subsidiary The Club At Yebisu Garden Co.,
Ltd. Naps Corporation, which was a consolidated subsidiary of PEOPLE CO.,
LTD. at the acquisition, is also included as wholly owned subsidiary of the
Company.
The number of consolidated subsidiaries decreased as follows:
Konami Computer Entertainment Sapporo, Inc. was merged into Konami Computer
Entertainment Yokohama, Inc. (currently named Konami Computer Entertainment
Studios, Inc.). Former Konami Capital, Inc. was merged into Konami Kosan,
Inc. (currently named Konami Capital, Inc.) Konami Amusement of America,
Inc. was merged into Konami of America, Inc. Konami Nissho-Bowl
Entertainment Co., Ltd. was merged into Konami Amusement Operation, Inc. In
addition, Konami do Brasil Ltda. was liquidated as part of the
restructuring of overseas operations, and excluded from the consolidation
scope.
(2) Four subsidiaries are excluded from the scope of consolidation since each
of their net assets, net sales, net income, and retained earnings are
immaterial, and have no significant effect as a whole on the consolidated
financial statements.
2. Application of Equity Method
(1) Two affiliated companies, Mobile 21 Co., Ltd. and TAKARA Co., Ltd., are
accounted for by the equity method.
(2) The equity method is not applied to unconsolidated subsidiaries as they
have no significant effect on the consolidated net income and retained
earnings, and are immaterial as a whole.
3. Fiscal Year-end of Consolidated Subsidiaries
PEOPLE CO., LTD. and The Club At Yebisu Garden Co., Ltd. use a fiscal year-end
at February 28, which is different from that of the Company. Accordingly, the
Company used their pro forma financial statements as of March 31, 2001 for the
consolidated financial statements.
4. Accounting Standards
a. Valuation of Assets
(1) Marketable and Investment Securities
Other investment securities for which the market value is not readily
determinable are stated at cost based on the moving average method.
Other investment securities for which the market value is readily
determinable are stated at fair value as of the balance sheet date.
Unrealized holding gain or loss is reported as a separate component of
shareholders’equity. The cost of securities sold is determined
primarily by the moving average method.
(2) Derivatives
Foreign exchange forward contracts are stated at fair value.
(3) Inventories
Inventories other than merchandise and work in process are stated at cost
determined by the moving average method.
Merchandise is stated at the lower of cost or market, cost being
determined mainly by the first-in, first-out method.
Work in process consisting of hardware products is stated at cost
determined by the moving average method while work in process consisting
of software products is stated at cost determined by the specific
identification method.
b. Depreciation Methods
Tangible fixed assets are depreciated mainly using the declining balance
method while intangible fixed assets are amortized mainly using the
straight-line method. For in-house software, amortization is computed
using the straight-line method based on the estimated useful life of 5
years.
c. Provisions
(1) Allowance for bad debts
Generally, the allowance for bad debts is calculated based on the actual
ratio of bad debt losses incurred. For specific accounts with higher
possibility of bad debt loss, the allowance is determined by independent
judgment.
(2) Allowance for bonuses
As part of estimated bonus payment to employees in the following period,
appropriate amount is provided.
(3) Allowance for retirement benefits (Prepaid pension expense)
Allowance for retirement benefits paid to employees is calculated based on
the estimated amount of the projected benefit obligation and the plan
assets at the year-end.
Generally, unrecognized net transition asset is amortized over 13 years.
Unrecognized actuarial net gain or loss will be amortized from the
following fiscal year within the average remaining service period of 13
years on a straight-line basis.
(4) Liability for directors' retirement benefits
Required amount for the year was reserved as liability under retirement
benefits paid to directors.
d. Foreign Currency Translation
Monetary assets and liabilities denominated in foreign currencies are
translated at the current exchange rates at each balance sheet date, and
the translation gains and losses are credited or charged to income. Assets
and liabilities of foreign subsidiaries are translated into yen at the
current exchange rate at each balance sheet date while revenue and expenses
are translated at the average exchange rate for the period. Differences
arising from such translation are included as translation adjustments in
minority interest and shareholders'equity.
e. Leases
Finance leases other than those that deem to transfer ownership of the
leased property to the lessee are accounted for as operating lease
transactions.
f. Deferred Assets
Stock issue expenses are charged to income as incurred.
The issuance of new shares by the public offering on March 22, 2001 was
based on the method (the 'new method') an underwriter purchases shares at
an issue price and sells them at an offer price, which is different from
the issue price, to public inventors.
In the new method, the difference between the issue price and the offer
price is the proceeds for underwriter, which is practically underwriting
commission. Therefore, the Company did not pay any underwriting commission
to the underwriter. The total amount of the difference between the issue
price and the offer price for the public offering on March 22, 2001 was
Y2,505 million, which should be accounted for as stock issue expenses if
the underwriter sold the shares at an offer price which was the same as the
issue price (the 'former method').
For the year ended March 31, 2001, with the new method, stock issue
expenses are recognized Y2,505 million less and ordinary income and net
income before income taxes are recognized Y2,505 more compared with the
former method.
g. Consumption Tax
Consumption tax is excluded from the stated amount of revenue and expenses.
5. Valuation of Subsidiaries’Assets and Liabilities
All of assets and liabilities of consolidated subsidiaries are valued at
their fair value.
6. Amortization of Goodwill
The difference between the cost and underlying fair value of the net equity
of investments in subsidiaries at acquisition is amortized on a straight-
line basis over the estimated period or 5 years. Such difference is charged
to income as incurred if the amount is considered immaterial.
7. Appropriation of Retained Earnings
The consolidated statements of retained earnings are prepared based on the
appropriation as proposed for each fiscal year.
8. Cash and Cash Equivalents
The cash and cash equivalents stated in the Consolidated Statements of Cash
Flows consist of cash on hand, all time deposits, and short-term
investments, which have original maturities of three months or less and can
be withdrawn on demand with no diminution of principal.
Changes in Presentation of Consolidated Financial Statements
(Consolidated Balance Sheets)
1. 'Other accounts payable' is stated separately although it has been included
in 'Other' of current assets. The amount of other accounts payable was
Y4,569 million for the year ended March 31, 2000.
2. 'Advances received' is stated separately although it has been included in
'Other' of current assets. The amount of other accounts payable was Y1,012
million for the year ended March 31, 2000.
(Consolidated Statements of Cash Flows)
1. In operating activities, the following items are included in 'Other - net '
for the year ended March 31, 2001, which were stated separately in the
previous year.
(Millions of yen)
Year ended
March 31, 2001
Loss on sale of investment securities 7
Increase in other current assets 430
Increase in other current liabilities 2,382
Directors'bonuses paid 170
2. In investing activities, the amounts of following items are netted as stated
in 'Increase in short-term loans receivable - net' for the year ended March
31, 2001, which were not netted in the previous year.
(Millions of yen)
Year ended
March 31, 2001
Increase in short-term loans receivable 434
Decrease in short-term loans receivable 364
3. In investing activities, the following items are included in 'Other - net '
for the year ended March 31, 2001, which were stated separately in the
previous year.
(Millions of yen)
Year ended
March 31, 2001
Increase in other assets 72
Decrease in other assets 825
Additional Information
1. Accounting for Retirement Benefits
Since the beginning of the year ended March 31, 2001, the accounting
standards for retirement benefits released by the Business Accounting
Deliberation Council on June 16, 1998, have been adopted. The financial
impact of this change is considered immaterial.
2. Accounting for Financial Instruments
Since the beginning of the year ended March 31, 2001, the accounting
standards for financial instruments released by the Business Accounting
Deliberation Council on January 22, 1999, have been adopted. The financial
impact of this change is considered immaterial. In addition, the securities
classified as 'other investment securities', based on the holding purpose at
the beginning of the year, are stated as investment securities.
3. Accounting for Foreign Currency Transactions
Since the beginning of the year ended March 31, 2001, the amended accounting
standards for foreign currency transactions, which were released by the
Business Accounting Deliberation Council on October 22, 1999, have been
adopted. The financial impact of this change is considered immaterial.
Translation adjustments previously stated in assets are included both in
shareholders'equity and minority interest due to a change in preparation
standards for interim consolidated financial statements.
Notes to Consolidated Financial Statements
Notes to Balance Sheets
(Millions of yen)
March 31, 2001 March 31, 2000
1. Investments in unconsolidated
subsidiaries and affiliated companies 3,241 165
2. Accumulated depreciation of
tangible fixed assets 31,209 11,699
3. Trade notes matured on the balance sheet date are settled on the exchange
date of the notes. Since March 31, 2001 was a holiday for financial
institutions, the following matured trade notes are included in each ending
balance.
(Millions of yen)
March 31, 2001
Trade notes receivable 98
Trade notes payable 3,049
Notes to Statements of Income
1. Losses from inventory valuation of Y242 million and Y356 million are included
in the cost of sales for the years ended March 31, 2001 and 2000,
respectively.
2. Selling, general and administrative expenses include the following:
(Millions of yen)
Year ended
March 31, 2001
Advertising expenses 6,572
Compensation to directors and
salaries expenses 8,102
Addition to allowance for bonuses 569
Addition to allowance for directors'
retirement benefits 78
Addition to allowance for bad debts 16
(Millions of yen)
Year ended
March 31, 2000
Advertising expenses 6,012
Compensation to directors and
salaries expenses 5,514
Addition to allowance for bonuses 305
Addition to allowance for directors'
retirement benefits 472
3. Research and development expenses of Y567 million and Y597 million are
included in the general and administrative expenses for the years ended March
31, 2001 and 2000, respectively.
4. Gain on sale of fixed assets consists of the following:
(Millions of yen)
Year ended Year ended
March 31, 2001 March 31, 2000
Land 92 56
Buildings 31 4
Tools and fixtures - 1
Total 124 63
5. Loss on sale and disposal of fixed assets consists of the following:
(Millions of yen)
Year ended Year ended
March 31, 2001 March 31, 2000
Sale of land 172 2,382
Sale of buildings and structures 93 2,037
Sale of tools and fixtures 2 53
Disposal of buildings and structures 60 547
Disposal of tools and fixtures 170 260
Other 16 331
Total 516 5,612
The amounts above include loss on sale of fixed assets to consolidated
subsidiaries Y4,023 million, which is not eliminated, for the years ended March
31, 2000.
Notes to Statements of Cash Flows
1. For the ending balance of cash and cash equivalents, there are differences
between statements of cash flows and balance sheets as follows:
(Millions of yen)
March 31, 2001 March 31, 2000
Cash and cash equivalents on balance sheets 66,812 58,780
Less: Time deposits with original maturities
of more than three months - (1,415)
Cash and cash equivalents on statements of
cash flows 66,812 57,365
2. Assets and liabilities of newly acquired consolidated subsidiaries, PEOPLE
CO., LTD. and two other companies, are as follows:
(Millions of yen)
Current assets 5,521
Fixed assets 31,385
Current liabilities (13,479)
Long-term liabilities (3,267)
Goodwill 58,087
Minority interest (9,204)
Acquisition value of PEOPLE 69,044
Less: Cash and cash equivalents of
PEOPLE and two others (759)
Expenditure on acquisition of
PEOPLE 68,285
Segment Information
1. Operations by Business Segment
Year ended March 31, 2001
(Millions of yen)
Consumer
-use Amusement Gaming Pachinko Creative Health
Software Machines Machines Systems Products Entertainment
Net sales:
To Y59,175 Y17,128 Y8,510 Y14,665 Y60,525 Y4,732
customers
Inter-
segment 1,771 249 371 - 64 -
Total 60,886 17,378 8,881 14,665 60,589 4,732
Operating
expenses 53,431 13,477 9,307 10,433 29,975 5,125
Operating
Income 7,454 3,901 (425) 4,232 30,614 (393)
Assets 46,192 10,149 11,931 8,019 9,719 95,736
Deprecia-
tion 1,106 368 379 24 98 244
expenses
Capital
expendi- Y1,888 Y165 Y607 Y111 Y465 Y71,173
tures
(Millions of yen)
Eliminations
Amusement and
Operations Finance Other Total Corporate Consolidated
Net sales:
To Y4,810 Y47 Y1,883 Y171,480 - Y171,480
customers
Inter-
segment - 166 1,968 4,531 Y(4,531) -
Total 4,810 214 3,851 176,011 (4,531) 171,480
Operating
expenses 4,986 202 3,482 130,421 2,413 132,834
Operating
income (176) 12 369 45,590 (6,944) 38,645
Assets 3,036 10,996 22,795 218,578 31,444 250,023
Depreciation
expenses 78 0 222 2,523 600 3,123
Capital
expendi-
tures Y151 - Y335 Y74,898 Y795 Y75,694
Year ended March 31, 2000
(Millions of yen)
Consumer-use Amusement Gaming Pachinko Creative
Software Machines Machines Systems Products
Net sales:
To customers Y61,264 Y25,334 Y12,988 Y13,178 Y27,820
Inter-segment 1,012 197 320 - 164
Total 62,277 25,532 13,309 13,178 27,985
Operating 46,812 20,309 12,218 10,055 16,921
expenses
Operating 15,464 5,222 1,091 3,123 11,064
income
Assets 32,693 10,206 15,225 7,402 6,607
Depreciation
expenses 881 392 409 84 60
Capital
expenditures Y1,644 Y106 Y159 Y21 Y40
(Millions of yen)
Eliminations
Amusement And
Operations Finance Other Total Corporate Consolidated
Net sales:
To Y4,503 Y69 Y1,505 Y146,666 - Y146,666
customers
Inter-segment - 171 2,730 4,596 Y(4,596) -
Total 4,503 240 4,235 151,263 (4,596) 146,666
Operating 4,486 223 3,856 114,884 843 115,727
expenses
Operating 17 16 378 36,379 (5,440) 30,938
income
Assets 4,482 13,598 12,562 102,779 33,301 136,080
Depreciation
expenses 149 0 210 2,190 597 2,788
Capital
expenditures Y57 - Y377 Y2,409 Y568 Y2,977
Notes:
1. Business segments are determined by the internal management on a basis of the
similarities in the type, nature and production methods of their products.
Primary products and services of each segment are defined as follows:
Consumer-use Software: Software for home-use game machines
Procurement and distribution of home-use game
software
Amusement Machines: Coin-operated game machines for amusement operations
Dance-simulation game machines
Music-simulation game machines
Disc jockey-simulation game machines
Gaming Machines: Parts for video slot machines for casinos
Token-operated game machines for amusement
operations
Pachinko Systems: LCD units for pachinko game machines
Pachinko slot machines
Creative Products: Card games
Character goods
Portable game machines
Health Entertainment: Operation of fitness facilities
Entertainment-oriented health-related products
Entertainment-oriented fitness machines
Home-use fitness games
Health network services
Amusement Operations: Operations of amusement centers
Finance: Financial services for the group companies
Other: Management of the group companies'real estate
2. Health Entertainment Division was newly established on August 24, 2000.
3. LCD unit manufacturing operations in Amusement Machines Division and pachinko
slot machine manufacturing operations in Gaming Machines Division have been
classified to Pachinko Systems since October 1, 2000, as they were considered
significant.
4. Procurement and distribution of home-use game software are categorized as
Creative Products in 'Operations by Business Segment' while the operations
have been transferred to Consumer-use Software Division on March 30, 2001.
5. Unallocated operating expenses in the Eliminations and Corporate column,
mainly consisting of the administrative expenses of the parent company,
amounted to Y6,245 million and Y5,602 for the years ended March 31, 2001 and
2000, respectively.
6. Assets in the Elimination and Corporate column, mainly consisting of cash and
cash equivalents, investment securities and administrative assets of the
Company, amounted to Y57,357 million and Y54,133 for the years ended March
31, 2001 and 2000, respectively.
7. Numbers in parentheses represent negative values.
2. Operations by Geographic Area
Year ended March 31, 2001
(Millions of yen)
Eliminations
and
Japan Americas Europe Asia Total Corporate Consolidated
Net sales:
To customers Y153,267 Y8,499 Y8,172 Y1,541 Y171,480 - Y171,480
Inter-segment 11,910 397 2 41 12,352 Y(12,352) -
Total 165,178 8,897 8,174 1,583 183,833 (12,352) 171,480
Operating 118,307 12,156 7,514 1,633 139,611 (6,776) 132,834
expenses
Operating income 46,871 (3,258) 659 (50) 44,222 (5,576) 38,645
(losses)
Assets Y138,199 Y8,767 Y6,663 Y1,015 Y154,646 Y95,376 Y250,023
Year ended March 31, 2000
(Millions of yen)
Eliminations
and
Japan Americas Europe Asia Total Corporate Consolidated
Net sales:
To customers Y123,276 Y11,827 Y9,265 Y2,297 Y146,666 - Y146,666
Inter-segment 15,986 615 2 121 16,725 Y(16,725) -
Total 139,262 12,442 9,267 2,418 163,391 (16,725) 146,666
Operating 101,626 13,444 8,999 2,082 126,152 (10,424) 115,727
expenses
Operating income 37,636 (1,001) 267 336 37,239 (6,300) 30,938
(losses)
Assets Y79,925 Y7,342 Y5,456 Y656 Y93,380 Y42,700 Y136,080
Notes:
1. Geographic areas are categorized by geographical proximity.
2. Each overseas segment consists of the following countries:
Americas: United States of America etc.
Europe: United Kingdom, Germany, France, etc.
Asia: Hong Kong, Singapore and Korea
3. Unallocated operating expenses in the Eliminations and Corporate column,
mainly consisting of the administrative expenses of the parent company,
amounted to Y6,245 million and Y5,602 million for the years ended March 31,
2001 and 2000, respectively.
4. Assets in the Elimination and Corporate column, mainly consisting of cash and
cash equivalents, investment securities and administrative assets of the
Company, amounted to Y57,357 million and Y54,133 million for the years ended
March 31, 2001 and 2000, respectively.
5. Numbers in parentheses represent negative values.
3. Overseas Sales
Year ended March 31, 2001
(Millions of yen)
Americas Europe Other Total
Overseas sales Y8,687 Y8,154 Y3,485 Y20,327
Consolidated sales - - - 171,480
Overseas portion in consolidated sales 5.1% 4.8% 2.0% 11.9%
Year ended March 31, 2000
(Millions of yen)
Americas Europe Other Total
Overseas sales Y12,586 Y8,582 Y6,679 Y27,848
Consolidated sales - - - 146,666
Overseas portion in consolidated sales 8.6% 5.8% 4.6% 19.0%
Notes:
1. Geographic areas are categorized by geographical proximity.
2. Each overseas segment consists of the following countries:
Americas: United States of America, Canada, etc.
Europe: United Kingdom, Germany, France, etc.
Asia: Hong Kong, Singapore, Australia, etc.
3. Overseas sales consist of the sales outside Japan of the parent company and
consolidated subsidiaries.
Leases
1. Finance leases other than those that deem to transfer ownership of leased
property to the lessee:
a. Equivalents of acquisition cost, accumulated depreciation, and ending balance
of leased assets
(Millions of yen)
March 31, 2001 March 31, 2000
Acquisition Accumulated Ending Acquisition Accumulated Ending
cost depreciation balance cost depreciation balance
Tools and
fixtures 11,846 6,154 5,622 5,248 2,783 2,464
Transportation
equipment 58 50 8 - - -
Total 11,905 6,204 5,630 5,248 2,783 2,464
b. Obligations under finance leases
(Millions of yen)
March 31, 2001 March 31, 2000
Due within one year 2,678 1,329
Due after one year 3,135 1,134
Total 5,814 2,464
c. Lease payments and depreciation equivalents
(Millions of yen)
Year ended Year ended
March 31, 2001 March 31, 2000
Lease payments 1,673 1,426
Depreciation equivalents 1,610 1,426
Interest equivalents 133 -
d. Depreciation equivalents are computed by the straight-line method with lease
term as useful life and salvage value of zero.
Note:
Interest equivalent is defined as the difference between total lease payment and
equivalent of acquisition cost, and allocated using the effective interest
method to each period.
2. Obligations under operating leases
(Millions of yen)
March 31, 2001 March 31, 2000
Due within one year 1,722 142
Due after one year 25,177 277
Total 26,899 419
Related Party Transactions
There is no related party transaction to be reported for the year ended March
31, 2001.
Income Taxes
1. Deferred tax assets and deferred tax liabilities consist of the following:
(Millions of yen)
March 31, 2001
Deferred tax assets:
Fixed assets - intercompany profits 1,237
Enterprise taxes payable 1,297
Liability for directors'retirement benefits 740
Allowance for retirement benefits 737
Allowance for bonuses 432
Inventories - intercompany profits etc. 3,907
Depreciable assets 426
Accrued expenses 327
Other 710
Sub total 9,818
Less: Valuation allowance (305)
Total deferred tax assets 9,512
Deferred tax liabilities:
Other (549)
Total deferred tax liabilities (549)
Deferred tax assets - net 8,963
2. Reconciliation between the normal effective statutory tax rate and the actual
effective tax rates reflected in the accompanying consolidated statements of
income is as follows:
March 31, 2001
Normal effective statutory tax rate 42.1%
Permanently non-deductible expenses 1.5
Permanently non-taxable income (0.2)
Per capita portion of inhabitants taxes 0.1
Gain on sale of stock by a subsidiary (4.2)
Equity losses 0.6
Valuation allowance 0.7
Utilized net operating loss carryforwards of subsidiaries (1.6)
Operating losses of subsidiaries 4.6
Other - net 0.1
Actual effective tax rate 43.7%
Marketable and Investment Securities
1. Other investment securities valued at market value (as of March 31, 2001)
(Millions of yen)
Acquisition Balance sheet Unrealized
cost amount gains (losses)
Stock 51 631 579
Other Securities 200 126 (73)
Total 251 757 505
2. Major securities for which the fair value is not readily determinable (as of
March 31, 2001)
(Millions of yen)
Balance sheet amount
Unlisted stock other than
over-the-counter stock 826
Derivatives
1. The Company enters into foreign exchange forward contracts to hedge foreign
exchange risk associated with certain assets and liabilities denominated in
foreign currencies. The Company does not hold or issue derivatives for
speculation purposes. Since the counterparties to those contracts are limited
to major international financial institutions, the Company does not
anticipate any losses arising from credit risk.
The execution and control of those contracts are controlled by the Finance
Department of the Company, and each contract and its results are reported to
the director in charge of the department on a monthly basis.
In principle, subsidiaries do not enter into any derivative transactions, and
no derivatives were held by the subsidiaries as of March 31, 2001.
2. Derivatives held by the Company as of March 31, 2001 are as follows:
(Millions of yen)
Unrealized holding
Contract amount Fair value gains (losses)
Foreign exchange
forward contracts:
(Short position)
USD 1,550 1,636 (85)
GBP 212 220 (7)
EUR 1,051 1,073 (21)
AUD 158 155 2
HKD 44 45 (0)
Total 3,017 3,130 (112)
Note:
All the contracts will be settled within one year from the year-end.
Severance and Retirement Plan
I. Severance and retirement plan of the Company and domestic consolidated
subsidiaries (except for PEOPLE CO., LTD., Naps Corporation and The Club at
Yebisu Garden Co., Ltd.)
1. The Company and domestic consolidated subsidiaries (except for PEOPLE CO.,
LTD., Naps Corporation and The Club at Yebisu Garden Co., Ltd.) have the non-
contributory defined benefit plan established in March 1986. Full amount of
retirement benefits and lump-sum severance payments based on the regulations
are provided by the plan. Also, the contributory plan has been applied.
A system of voluntary advance retirement payments has been applied to certain
employees who earn annually fixed salaries since August 1998 while the non-
contributory plan is primarily for other employees. In addition, when the
members of the non-contributory plan are qualified for voluntary advance
retirement payments, they must withdraw from the plan.
The Company and domestic consolidated subsidiaries have joined the welfare
pension fund for the computer industry association, a jointly established
contributory plan, since its establishment in October 1989.
Total amount of the contributory plan assets for the Company and domestic
consolidated subsidiaries (except for PEOPLE CO., LTD., Naps Corporation and
The Club at Yebisu Garden Co., Ltd.) is Y2,387 million, which is calculated
based on the ratio of members of the plan.
2. Retirement benefit obligation
(Millions of yen)
March 31, 2001
a. Benefit obligations (1,209)
b. Plan assets 1,343
c. Funded status (a + b) 133
d. Unrecognized net transition asset (191)
e. Unrecognized actuarial loss 198
f. Unrecognized prior service cost -
g. Benefit obligations on balance sheet - net
(c + d + e + f) 141
h. Prepaid pension expense 141
i. Allowance for retirement benefits (g - h) -
Note:
The contributory plan is not included.
3. Net periodic pension cost
(Millions of yen)
Year ended
March 31, 2001
a. Service cost 164
b. Interest cost 19
c. Expected return on plan assets (66)
d. Amortization of net transition asset (15)
e. Net periodic pension cost (a + b + c + d) 101
4. Actuarial assumptions
March 31, 2001
a. Discount rate 3.0%
b. Expected rate of return on plan assets 5.0%
c. Allocation method of projected benefit obligation Straight-line basis
d. Years used to amortize prior service cost -
e. Years used to amortize net transition asset 13 years
f. Years used to amortize actuarial loss 13 years
II. Severance and retirement plan of PEOPLE CO., LTD., Naps Corporation and The
Club at Yebisu Garden Co., Ltd.
1. PEOPLE CO., LTD., Naps Corporation and The Club at Yebisu Garden Co., Ltd.,
which were acquired through a tender offer in February 2001, have severance
and retirement plans, which are different from those of the Company and
domestic consolidated subsidiary. The defined benefit plans include the
severance plan, non-contributory plan (started in February 1985) and
contributory plan (established in February 1979).
PEOPLE CO., LTD. and The Club At Yebisu Garden Co., Ltd. use a fiscal year-
end at February 28, which is different from that of the Company. Accordingly,
the Company used their pro forma financial statements as at March 31, 2001
for the consolidated financial statements.
2. Retirement benefit obligation
(Millions of yen)
March 31, 2001
a. Benefit obligations (5,122)
b. Plan assets 2,405
c. Funded status (a + b) (2,716)
d. Unrecognized net transition asset 898
e. Unrecognized actuarial loss -
f. Unrecognized prior service cost -
g. Benefit obligations on balance sheet - net
(c + d + e + f) (1,818)
h. Prepaid pension expense -
i. Allowance for retirement benefits (1,818)
Note:
A portion of the contributory plan carried on behalf of the government is
included.
3. Net periodic pension cost
(Millions of yen)
Year ended
March 31, 2001
a. Service cost 39
b. Interest cost 14
c. Expected return on plan assets (8)
d. Amortization of net transition asset 81
e. Net periodic pension cost (a + b + c + d) 127
4. Actuarial assumptions
March 31, 2001
a. Discount rate 3.5%
b. Expected rate of return on plan assets 4.2%
c. Allocation method of projected benefit obligation Straight-line basis
d. Years used to amortize prior service cost -
e. Years used to amortize net transition asset 1 year
5. Summary of Non-consolidated Financial Results
for the Year Ended March 31, 2001
May 10, 2001
KONAMI CORPORATION
Address: 3-1, Toranomon 4-chome, Minato-ku, Tokyo, Japan
Stock Code Number: 9766
Shares Listed: Tokyo Stock Exchange (First Section), Osaka Securities Exchange
(First Section),
London Stock Exchange, and Singapore Exchange (Main Board)
Contact: Mr. Noriaki Yamaguchi, Director
Phone: 03 (3578) 0573
Date of Board Meeting on the financial results: May 10, 2001
Date of Annual ShareholderS' Meeting: June 21, 2001
1. Financial Results for the Year Ended March 31, 2001
(1) Results of Operation
(Figures truncated)
Year-on-year Operating Year-on-year Ordinary Year-on-
Net Sales Change Income Change Income Year
Change
(Y million) (%) (Y million) (%) (Y million) (%)
Year ended 148,470 14.1 34,092 33.1 33,238 31.0
March 31,2001
Year ended 130,124 29.1 25,613 80.2 25,374 96.4
March 31,2000
Diluted Ordinary Ordinary
Net Year-on-year Net Net Return Income to Income to
Income Change Income Income on Assets Sales
per per Equity Ratio Ratio
Share Share
(Y million) (%) (Y) (Y) (%) (%) (%)
Year ended 18,042 11.1 158.12 - 16.6 20.6 22.4
March 31,2001
Year ended
March 31,2000 16,236 224.3 290.26 288.63 26.4 22.6 19.5
Notes:
1. Average number of shares issued and outstanding
Year ended March 31, 2001: 114,107,429 shares
Year ended March 31, 2000: 55,937,977 shares
2. There is no change in accounting policies.
3. Change (%) of net sales, operating income, ordinary income and net income
represents the increase or decrease ratio in relation with the same period of
the previous year.
(2) Dividends
Cash Dividends per Share
Total Rate of Cash
Annual Interim Year-end Dividend Payout Ratio Dividends to
Payout Shareholders'
Equity
(Y) (Y) (Y) (Y million) (%) (%)
Year ended 54.00 26.00 28.00 6,561 36.4 4.5
March 31, 2001
Year ended 97.00 45.00 52.00 5,510 33.9 7.7
March 31, 2000
Note:
There was no commemorative or special dividend for the year ended March 31,
2001.
(3) Financial Position
Total Shareholders' Equity-Assets Total Shareholders'
Total Assets Equity Ratio Equity per Share
(Y million) (Y million) (%) (Y)
March 31, 201,090 146,309 72.8 1,136.49
2001
March 31, 120,859 71,154 58.9 1,251.21
2000
Notes:
Number of shares issued and outstanding
March 31, 2001 F 128,737,566 shares
March 31, 2000 F 56,868,783 shares
2. Financial Forecast for the Year Ended March 31, 2002
Ordinary Net Cash Dividends per Share
Net Sales Income Income Interim Year-end Annual
(Y million) (Y million) (Y million) (Y) (Y million) (Y)
Six months ended
September 30, 2001
Year ended 28.00 28.00 56.00
March 31, 2002
Note:
1. Non-consolidated financial forecast for the year ended March 31, 2002 is not
disclosed currently.
2. Annual cash dividends per share may change depending on the consolidated net
income for the year, since the total amount of cash dividends should be 30 % of
consolidated net income.
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